Golar enters preliminary deal to provide FLNG for BP’s West African project
The Bermuda-based LNG shipping giant Golar LNG said on Thursday that it has entered into a preliminary deal with units of BP in Mauritania and Senegal for the provision of a floating LNG producing unit.
Golar said in a statement it exchanged heads of terms for a charter deal with BP Mauritania Investments and BP Senegal Investments in their capacity as block operators.
The heads of terms represent a commitment between the parties to translate the key commercial terms into a full agreement and proceed with front-end engineering design (FEED) on the provision of an FLNG vessel to support the development of Phase 1A of the Greater Tortue / Ahmeyin field, located offshore Mauritania and Senegal, the statement said.
The preliminary deal creates obligations on Golar to progress FEED work and be ready for a vessel conversion from July 1, 2018 onwards; which would be contingent on project FID, expected end 2018, it said.
The vessel conversion would take place at Keppel Shipyard building on Keppel’s delivery of the FLNG Hilli Episeyo, utilizing Black and Veatch Corporation’s PRICO technology.
The deal also includes an option for BP on a second FLNG vessel.
In the event that FID is not taken customary termination fees apply, Golar said.
The Tortue discovery was made by Kosmos Energy, which farmed down its investment to BP in December 2016. BP now has the largest interest (60 percent) among the four partners in the project and is the operator.